Which of the following statements is true? (i) When a competitive firm sells an additional unit of output, its revenue increases by an amount less than the price. (ii) When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price. (iii) Average revenue is the same as price for both competitive and monopoly firms
a. (ii) only
b. (iii) only
c. (i) and (ii) only
d. (ii) and (iii) only
d
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Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph?
A) The supply curve for cases of beer would shift to the right by $1. B) The supply curve for cases of beer would shift to the left by less than $1. C) The supply curve for cases of beer would shift to the left by more than $1. D) The supply curve for cases of beer would shift to the left by $1.
With the elimination of the Civil Aeronautics Board (CAB), safety and quality are no longer directly regulated by government, instead, the incentive for airline safety and quality is driven by market reputation
Indicate whether the statement is true or false
Other things the same, when the price level rises, interest rates
a. rise, so firms increase investment. b. rise, so firms decrease investment. c. fall, so firms increase investment. d. fall, so firms decrease investment.
A decrease in the price level in Japan will shift the U.S. aggregate demand curve outward.
Answer the following statement true (T) or false (F)